Nation State in Decline

In the early stages of Globalization (1600 -1950s especially) Nation States werevery powerful – Colonialism for example was led by European governments andmonarchies and the most serious conflicts tended to be between nation states –culminating in World War 2. However, since then, many globalization theorists argue thatincreasing global flows in trade and communications have reduced the relative power ofNation States.

Evidence for the power of Nation States declining

 National Governments increasingly face problems that are too big for them to deal with on their own.  The United Nations and The Universal Declaration of Human Rights – limits the power of Nations to restrict the freedoms of individuals.  Global Social Movements such as the green movement and the occupy movement are increasingly interconnected.  Factors which are widely thought to drive nation state decline under globalization are policy competition and weakened ability to implement policy within nation states in the presence of globalization.  Some Transnational Corporations are bigger than Nation States – and so wield power over them.  The power of United Nations to make any real change in the world is limited.

Globalization Favors Westernization

One commonly recognized effect of globalization is that it favors Westernization,

meaning that other nation-states are at a disadvantage when dealing with the Americasand Europe. This is particularly true in the agricultural industry, in which second- andthird-world nations face competition from Western companies. Another potential effect isthat nation-states are forced to examine their economic policies in light of the manychallenges and opportunities that multinational corporations and other entities ofinternational commerce present. Multinational corporations, in particular, challenge nation-states to confront theunique issue of foreign direct investments, forcing nation-states to determine how muchinternational influence they allow in their economies. Globalization also creates a senseof interdependence among nations, which could create an imbalance of power amongnations of differing economic strengths.

The role of the nation-state in a global world is largely a regulatory one as the chieffactor in global interdependence. While the domestic role of the nation-state remainslargely unchanged, states that were previously isolated are now forced to engage withone another to set international commerce policies. Through various economicimbalances, these interactions may lead to diminished roles for some states and exaltedroles for others.